EACOM Timber Corporation Board approves USNR to rebuild Timmins
Mill and announces completion of Elk Lake upgrades
MONTRÉAL and VANCOUVER, Dec. 12,
2012 /CNW Telbec/ - EACOM Timber Corporation (TSXV: ETR)
("EACOM", or the "Company") is pleased to announce that the Board
has approved entering into an agreement with USNRKockums Cancar
Inc.,("USNR") to rebuild the Timmins Mill. The total cost of
the project is estimated at $25
million, a substantial portion of which is being funded from
proceeds of insurance related to a fire. As reported in January of
this year, the mill located in Timmins
Ontario was destroyed by fire. To date the Company has
received $23,700,000 of insurance
proceeds, $13,700,000 related to
business interruption and $10,000,000
for damage or destruction of assets.
Eacom has also completed its capital project on
the sawline at the Elk Lake
facility. The mill has been restarted and expected to operate
at full production in January
2013.
"We are continuing our capital expenditure
program designed to increase productivity and capacity at our mills
to reduce manufacturing costs. The rebuild of Timmins has also been designed to provide for
improved productivity. Lumber markets have improved and
continue to contribute to the overall performance of the Company"
commented Rick Doman, President and
CEO of the Company.
About EACOM
EACOM Timber Corporation is a TSX-V listed
company. The business activities of EACOM consist of the
manufacturing, marketing and distribution of lumber, wood chips and
wood-based value-added products, and the management of forest
resources. EACOM owns eight sawmills, all located in Eastern Canada, and related tenures. The mills
are Timmins, Nairn Centre, Gogama, Elk
Lake and Ear Falls in
Ontario, and Val-d'Or, Ste-Marie and Matagami in Quebec. The mills in Ear Falls, Ontario and Ste-Marie, Quebec are currently idled, and
operations in Val-d'Or and
Matagami which had been
temporarily shut down due to weak market conditions will be
resuming in the third quarter. The mill in Timmins was seriously damaged by fire in
January 2012 and remains shut down
due to the fire. EACOM also owns a lumber remanufacturing facility
in Val-d'Or, Quebec, and a 50%
interest in an "I" joist plant in Sault
Ste-Marie, Ontario.
The TSX Venture Exchange has neither approved
nor disapproved the content of this press release. All director and
officer appointments are subject to TSX Venture Exchange
approval.
Forward-Looking Statements
All statements in this news release that are
not based on historical facts are "forward-looking statements".
While management has based any forward-looking statements contained
herein on its current expectations, the information on which such
expectations were based may change. These forward-looking
statements rely on a number of assumptions concerning future events
and are subject to a number of risks, uncertainties and other
factors, many of which are beyond our control and could cause
actual results to materially differ from such statements. Such
risks, uncertainties and other factors include, but are not
necessarily limited to, those set forth under "RISKS AND
UNCERTAINTIES" in the Company's current MD&A, and under "RISK
FACTORS" in the Company's Filing Statement dated January 8, 2010.
Additional information relating to EACOM is
available at www.eacom.ca and on SEDAR at www.sedar.com.
SOURCE EACOM